WorkCover Queensland’s financial strength supports Australia’s lowest workers’ compensation premium rate
As announced today in a letter to all Policyholders from the Premier of Queensland and the Attorney-General, the workers’ compensation average premium rate will be reduced by 17% for 2014-2015. WorkCover Queensland’s Chairman Glenn Ferguson said the premium reduction from $1.45 to $1.20 per $100 of wages paid was the lowest average rate in Australia and was evidence of the fund’s transformation into Australia’s best performing workers’ compensation insurer.
“We are making sure that businesses benefit from premium levels that are the lowest in Australia, providing a competitive advantage for Queensland business owners,” Mr Ferguson said.
He said the Queensland Government’s decision to undertake necessary workers’ compensation reforms in October last year supported the ongoing improvement in the fund’s financial performance.
“Our positive financial performance last year, amid a continuing volatile global economy, has been achieved through prudent financial management and efficiencies throughout all our operations. It has enabled WorkCover to achieve a stable and certain financial position,” Mr Ferguson said.
“It is important and makes good business sense that adequate reserves are maintained to ensure stability for our customers in premium and the ongoing viability of the fund. This also provides certainty for business that competitive and stable premiums are sustainable into the future,” he said.
Mr Ferguson said WorkCover Queensland’s Board and senior executives were committed to continued prudent financial management of the organisation to ensure the long term viability of the scheme.
He said maintaining strong worker safeguards and benefits remained a key focus of WorkCover Queensland.
“Queensland’s workers’ compensation scheme is the best and fairest in Australia,” Mr Ferguson said.
“With a return to work rate of 95.7% for injured workers, it is clear that we maintain a constant focus on providing support for injured workers and encouragement of recovery and return to work. Queensland pays the best benefits to workers and is the only state that continues to cover all workers travelling to and from work.”
Mr Ferguson said despite the average premium reduction, Queensland employers must continue to focus on worker safety to benefit from the rate drop.
“The factors that contribute to a company’s premium calculation include wages paid, claims experience, and industry performance. Continued poor claim performance, through a high frequency of claims and costs, will still negatively impact the premium rate calculation.”
In addition to today’s premium reduction, WorkCover Queensland has introduced further initiatives to make things easier for businesses in Queensland.
WorkCover Chief Executive Officer Tony Hawkins said WorkCover was committed to supporting businesses in maintaining safe and healthy work environments and meeting their workers’ compensation and return to work responsibilities.
“Businesses have limited time and resources and they need easy to understand information, simpler ways to calculate their workers’ compensation premiums and more flexible ways to pay them. In recognition of this, WorkCover has introduced two new initiatives in 2014 including a simplified premium model and improved flexible payment options,” Mr Hawkins said.
WorkCover’s simplified premium model means employers who pay $1.5 million or less in wages, will be able to better understand and manage their premium due to a cap on annual rate variances at 10%. This will allow businesses to more accurately budget for premium costs.
With the new flexible payment options, all policy holders now have the option to pay their premium through a flexible interest-free payment plan. If businesses declare their wages early in July, they’ll have the opportunity to pay their premium over 12 instalments in the financial year, on a monthly deduction date that suits their business.
“WorkCover is listening to Queensland businesses. The message is clear that through our approach to improved service delivery and communication, we will continue to support businesses as they focus on being safer, more efficient and more competitive. This in turn will have clear flow on benefits to the Queensland economy and community,” Mr Hawkins said.
For more information visit our dedicated 2014–2015 premium page.
If you have any questions regarding your premium, please contact your relationship manager or call us on 1300 362 128.
- Last updated
- 30 June 2015